Managerial Accounting: Tools for Business Decision Making

✍ Scribed by Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso

• Publisher: Wiley
• Year: 2011
• Tongue: English
• Leaves: 775
• Edition: sixth
• Category: Library

✦ Synopsis

Weygandt, Managerial Accounting, 6th Edition gives students the tools they need to succeed, whether as accountants or in other career paths. The authors present the fundamental concepts of managerial accounting in an easy-to-understand fashion in a decision-making framework for a one semester, undergraduate managerial accounting course.  With an expanded emphasis on student learning, Weygandt Managerial Accounting 6th Edition demonstrates how invaluable management accounting information is to business decision-making. The author team of Weygandt, Kimmel, and Kieso provide students with pedagogy that helps develop decision-making skills, so students can be successful as future business professionals.The decision making pedagogy, easy-to-understand writing style, and quality end of chapter material have been the hallmark features that have made Managerial Accounting, by Weygandt, Kimmel, and Kieso one of the most popular books for this course. • Real-World Emphasis - the authors continue the practice of using numerous examples from real-world companies in chapter openers and in the Management Insight boxes. • Accounting Across the Organization - gives students business context by showing how people, often in non-accounting functions, use accounting information to make decisions.• Expanded Emphasis Service Company - prepares students for work in the service industry market, and shows that accounting is relevant to both service and manufacturing companies. • Do IT! Exercises - teach students how to apply their knowledge quickly after they've learned it • Comprehensive Homework Material - each chapter concludes with Self-Test Questions, Questions, Brief Exercises, Do IT! Review, Exercises, and Problems. • Broadening Your Perspective Section - is designed to help develop students' decision-making and critical thinking skills.New to this Edition• Use of Current Designs (kayak-making company)-introduced in new Chapter 1 Feature Story, and is the basis for new Broadening Your Perspective problem- presents managerial accounting situations that are based on the operations of a real company.• People, Planet, and Profit Insight Boxes, featuring sustainability approaches of real companies.• New Broadening Your Perspective problem: Considering People, Planet, and Profit, which requires students to consider examples of real cases, such as the costs associated with an oil-refinery accident versus the costs of improving safety/work conditions.• New Wiley Managerial Accounting Videos use real, successful companies to demonstrate and reinforce managerial accounting concepts. . • New easy-to-read spreadsheet illustrations improve readability as well as comparability to Excel.• Bloom's taxonomy codes added to Brief Exercises, Do it! Review, Exercises and Problems, for quick assessment categorization.• Updated End-of-chapter homework material.  

✦ Table of Contents

Copyright......Page 4
From the Authors......Page 5
Author Commitment......Page 8
Acknowledgments......Page 19
Brief Contents......Page 21
Contents......Page 22
Just Add Water... and Paddle......Page 26
Management Functions......Page 28
Organizational Structure......Page 30
Business Ethics......Page 31
Manufacturing Costs......Page 33
Product Versus Period Costs......Page 35
Income Statement......Page 36
Cost of Goods Manufactured......Page 37
Cost of Goods Manufactured Schedule......Page 38
Balance Sheet......Page 39
Cost Concepts--A Review......Page 40
Product Costing for Service Industries......Page 42
Focus on the Value Chain......Page 43
Balanced Scorecard......Page 44
Corporate Social Responsibility......Page 45
She Succeeds Where Others Have Failed......Page 72
Process Cost System......Page 74
Job Order Cost Flow......Page 75
Accumulating Manufacturing Costs......Page 76
Assigning Manufacturing Costs to Work in Process......Page 78
Manufacturing Overhead Costs......Page 82
Assigning Costs to Finished Goods......Page 86
Assigning Costs to Cost of Goods Sold......Page 87
Summary of Job Order Cost Flows......Page 88
Job Order Costing for Service Companies......Page 89
Advantages and Disadvantages of Job Order Costing......Page 91
Reporting Job Cost Data......Page 92
Under- or Overapplied Manufacturing Overhead......Page 93
Ben & Jerry’s Tracks Its Mix-Ups......Page 118
Uses of Process Cost Systems......Page 120
Similarities and Differences Between Job Order Cost and Process Cost Systems......Page 121
Assigning Manufacturing Costs--Journal Entries......Page 123
Weighted-Average Method......Page 126
Refinements on the Weighted-Average Method......Page 127
Production Cost Report......Page 129
Compute the Physical Unit Flow (Step 1)......Page 130
Compute Unit Production Costs (Step 3)......Page 131
Prepare a Cost Reconciliation Schedule (Step 4)......Page 132
Preparing the Production Cost Report......Page 133
Costing Systems—Final Comments......Page 135
Equivalent Units Under FIFO......Page 139
Comprehensive Example......Page 140
FIFO and Weighted-Average......Page 144
Precor Is on Your Side......Page 168
The Need for a New Approach......Page 170
Activity-Based Costing......Page 171
Example of ABC versus Traditional Costing......Page 173
Compute Activity-Based Overhead Rates (Step 3)......Page 174
Assign Overhead Costs to Products (Step 4)......Page 175
Comparing Unit Costs......Page 176
Limitations of ABC......Page 179
When to Use ABC......Page 180
Value-Added versus Non–Value-Added Activities......Page 181
Classification of Activity Levels......Page 183
Activity-Based Costing in Service Industries......Page 185
Activity-Based Costing Example......Page 186
APPENDIX 4A: Just-in-Time Processing......Page 190
Objective of JIT Processing......Page 191
Benefits of JIT Processing......Page 192
Don’t Worry—Just Get Big......Page 220
Variable Costs......Page 222
Fixed Costs......Page 223
Relevant Range......Page 224
Mixed Costs......Page 225
Importance of Identifying Variable and Fixed Costs......Page 229
CVP Income Statement......Page 230
Break-Even Analysis......Page 233
Target Net Income......Page 237
Margin of Safety......Page 239
Rapid Replay......Page 260
Basic Concepts......Page 262
Basic Computations......Page 263
CVP and Changes in the Business Environment......Page 265
Break-Even Sales in Units......Page 268
Break-Even Sales in Dollars......Page 270
Determining Sales Mix with Limited Resources......Page 272
Cost Structure and Operating Leverage......Page 275
Operating Leverage......Page 276
Example Comparing Absorption Costing with Variable Costing......Page 280
An Extended Example......Page 282
Decision-Making Concerns......Page 286
Potential Advantages of Variable Costing......Page 288
Make It or Buy It?......Page 316
Incremental Analysis Approach......Page 318
How Incremental Analysis Works......Page 319
Accept an Order at a Special Price......Page 320
Make or Buy......Page 322
Sell or Process Further......Page 325
Repair, Retain, or Replace Equipment......Page 328
Eliminate an Unprofitable Segment or Product......Page 329
Relationship of Incremental Analysis and Activity-Based Costing......Page 332
They’ve Got Your Size--and Color......Page 356
Pricing Goods for External Sales......Page 358
Target Costing......Page 359
Cost-Plus Pricing......Page 361
Variable-Cost Pricing......Page 363
Pricing Services......Page 365
Transfer Pricing for Internal Sales......Page 369
Negotiated Transfer Prices......Page 370
Cost-Based Transfer Prices......Page 373
Market-Based Transfer Prices......Page 374
Transfers Between Divisions in Different Countries......Page 375
Absorption-Cost Pricing......Page 379
Variable-Cost Pricing......Page 381
Was This the Next Amazon.com? Not Quite......Page 406
Essentials of Effective Budgeting......Page 408
The Budgeting Process......Page 409
Budgeting and Human Behavior......Page 410
The Master Budget......Page 411
Sales Budget......Page 413
Production Budget......Page 414
Direct Materials Budget......Page 416
Manufacturing Overhead Budget......Page 419
Budgeted Income Statement......Page 420
Cash Budget......Page 423
Budgeted Balance Sheet......Page 426
Merchandisers......Page 428
Not-for-Profit Organizations......Page 429
Turning Trash Into Treasure......Page 458
Budgetary Control......Page 460
Examples......Page 461
Flexible Budgets......Page 462
Why Flexible Budgets?......Page 463
Developing the Flexible Budget......Page 464
Flexible Budget--a Case Study......Page 466
Flexible Budget Reports......Page 469
Responsibility Accounting......Page 471
Principles of Performance Evaluation......Page 473
Responsibility Reporting System......Page 475
Types of Responsibility Centers......Page 478
Responsibility Accounting for Profit Centers......Page 479
Responsibility Accounting for Investment Centers......Page 482
APPENDIX 10A: Residual Income—Another Performance Measurement......Page 489
Residual Income Weakness......Page 490
80,000 Different Caffeinated Combinations......Page 518
Setting Standard Costs......Page 520
Ideal versus Normal Standards......Page 521
A Case Study......Page 522
Analyzing and Reporting Variances from Standards......Page 526
Direct Materials Variances......Page 527
Direct Labor Variances......Page 530
Manufacturing Overhead Variances......Page 532
Reporting Variances......Page 535
Balanced Scorecard......Page 536
Journal Entries......Page 542
Ledger Accounts......Page 544
Overhead Controllable Variance......Page 545
Overhead Volume Variance......Page 546
Floating Hotels......Page 570
Cash Flow Information......Page 572
Illustrative Data......Page 573
Cash Payback......Page 574
Net Present Value Method......Page 575
Equal Annual Cash Flows......Page 576
Unequal Annual Cash Flows......Page 577
Choosing a Discount Rate......Page 578
Simplifying Assumptions......Page 579
Comprehensive Example......Page 580
Intangible Benefits......Page 581
Profitability Index for Mutually Exclusive Projects......Page 583
Risk Analysis......Page 584
Other Capital Budgeting Techniques......Page 585
Internal Rate of Return Method......Page 586
Annual Rate of Return Method......Page 588
Got Cash?......Page 610
Classification of Cash Flows......Page 612
Format of the Statement of Cash Flows......Page 614
Indirect and Direct Methods......Page 616
Preparing the Statement of Cash Flows--Indirect Method......Page 617
Step 1: Operating Activities......Page 618
Summary of Conversion to Net Cash Provided by Operating Activities--Indirect Method......Page 622
Step 2: Investing and Financing Activities......Page 624
Step 3: Net Change in Cash......Page 625
Free Cash Flow......Page 628
APPENDIX 13A: Using a Worksheet to Prepare the Statement of Cash Flows--Indirect Method......Page 632
Preparing the Worksheet......Page 633
APPENDIX 13B: Statement of Cash Flows--Direct Method......Page 639
Step 1: Operating Activities......Page 640
Step 2: Investing and Financing Activities......Page 644
Step 3: Net Change in Cash......Page 645
APPENDIX 13C: Statement of Cash Flows--T-Account Approach......Page 648
It Pays to Be Patient......Page 674
Tools of Analysis......Page 676
Horizontal Analysis......Page 677
Balance Sheet......Page 678
Retained Earnings Statement......Page 679
Income Statement......Page 681
Ratio Analysis......Page 683
Liquidity Ratios......Page 684
Profitability Ratios......Page 688
Solvency Ratios......Page 692
Summary of Ratios......Page 693
Earning Power and Irregular Items......Page 695
Discontinued Operations......Page 696
Extraordinary Items......Page 697
Comprehensive Income......Page 699
Pro Forma Income......Page 700
Improper Recognition......Page 701
Simple Interest......Page 729
Future Value of a Single Amount......Page 730
Future Value of an Annuity......Page 732
Present Value of a Single Amount......Page 735
Present Value of an Annuity......Page 737
Computing the Present Value of a Long-Term Note or Bond......Page 739
Computing the Present Values in a Capital Budgeting Decision......Page 742
Present value of a Single Sum......Page 744
Present Value of an Annuity......Page 745
Useful Applications of the Financial Calculator......Page 746
Standards......Page 751
Resolution of Ethical Conflict......Page 752
Cases for Management Decision-Making......Page 753
Photo Credits......Page 755
Company Index......Page 757
Subject Index......Page 759
Wiley Managerial Accounting Video Series......Page 771
Rapid Review......Page 773